The [1] [2] (pronounced as /de/,) is Germany's unemployment payment introduced on 1 January 2023. The was developed by Olaf Scholz's coalition government and agreed by Germany's two chambers in November 2022.
Compared to its predecessor (commonly known as Hartz IV), it has a higher unemployment grant (Regelsatz). Adult jobseekers living alone now received a default sum of €502 per month (plus standard rates for rent and energy), compared to previously €449. In 2024 the sum was increased to €563. The introduction of also increased the amount of personal wealth that beneficiaries can hold without a part of their unemployment grant being deducted. A single adult can own up to €40,000. also replaced the Sozialgeld, a benefit for people who cannot work.[3]
See main article: Hartz concept.
The predecessor Hartz IV was introduced on 1 January 2005 by the Second Schröder cabinet, a coalition of the German Social Democrats and Greens.[4] How much money beneficiaries received was adjusted several times since. In 2011, the grand coalition between Social Democrats and Christian Democrats reformed Hartz IV.
Beginning in 2022, labour minister Hubertus Heil (Social Democrats) developed the proposal for the ruling traffic light coalition. After the coalition passed their proposal in Germany's lower chamber (Bundestag), the opposition Christian Democrats (CDU/CSU) used their consent law veto in the upper chamber (Bundesrat).[5] This led to negotiations and a Bundesrat-Bundestag compromise reached via the procedure.[6]
| Hartz IV (2022)[7] | government proposal[8] [9] | government-CDU/CSU compromise | ||
|---|---|---|---|---|
| Agreed by | Second Merkel government (last reform in 2011)[10] [11] | Scholz coalition(blocked by CDU in Bundesrat) | Scholz coalition and the opposition CDU/CSU | |
| Standard monthly unemployment payment, single adult | €449, adjusted annually | €502, adjusted annually | €502, adjusted annually | |
| Grace period without sanctions | - | 6 months without sanctions | - | |
| Mild sanctions period | - | 24 months | 12 months | |
| Personal assets allowed, single adult | €3,100, or €150 multiplied by the recipient's age, whichever is higher. (e.g€. 9,000 for a 60-year old jobseeker) | €60,000 | €40,000 |
The basic idea behind the was to bring people into the workforce. In June 2024 the number of recipients had risen for the second year to some 5.5 million people. Four million of those were theoretically able to work, 1.5 million were deemed unfit for work. While 17% of people in Germany were not German citizens at that time, 47% of the people receiving belonged to that group. The statistics did not record whether someone with a German passport originally came to Germany as a migrant or a refugee. About a quarter of the 47% non-Germans came from Ukraine, Syria, Turkey and Afghanistan.[12] Hugo Müller-Vogg commented that the industry was desperatly looking for workers, while the government made it more attractive for non-Germans in Germany to stay unemployed.[13] The NPO Correctiv commented on the for migrants and pointed out, that German law initially requires asylum seekers to stay in the state they were allocated under a refugee-sharing agreement, which may hinder them from finding work, if in a state with high shares of unemployment.[14]
In October 2024, the German public health insurance organizations blamed the government for a sharp rise in premiums, since the monthly €119 paid by the government for each of the 5,6 million recipients of to the organisations were insufficient to cover the cost. That resulted in the rest of the members having to cover for the €9.2 billion in annual losses by paying higher premiums.[15]